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Yili Co., Ltd. (600887): Plant selection of soy milk and offline catering team up with public comment on future prospects

Yili Co., Ltd. (600887): Plant selection of soy milk and offline catering team up with public comment on future prospects

Event: On July 5th, Yili’s affiliated soybean milk brand “Plant Selection” appeared at the “Popular Review 2019 Must Eat List” awards ceremony.

The two sides stated that in the future, plant selection soybean milk and Meituan comments will carry out in-depth cooperation in scene marketing and cross-border linkage.

The series of online and offline integrated marketing will be launched at the same time with the theme of “soybeans are more mellow and delicious without burden”.

Meituan comments will help plant soymilk to enter large-scale chain catering companies and build the brand’s influence on B-side catering merchants.

Comments: 1.

Strategic planning of two-wheel drive, healthy drinks are ready.

Yili has newly established a health drink business unit since 18 years, with independent accounting, forming a synergy with a series of various dairy business units, and two-wheel drive, will create an independent system of beverage modules.

We believe that in the process of channel construction and management switching and upgrading, Yili can gradually integrate the liquid milk distributors and actively explore the construction and management of beverage distributor systems.

2.

The catering channel has huge potential, and new channels bring new expectations.

The annual catering 杭州桑拿 market size in 2018 has reached 4.

3 trillion, Zuo food and beverage products also have great potential.

This time together, they will re-understand the catering channel network of reviews, quickly realize brand occupancy, and further consolidate and expand their own brand advantages.

Yili’s layout of catering channels, short-term internal marketing expenses may improve, but the gradual improvement of the catering market channels and the improvement of brand awareness may lead to breakthroughs in product sales in the future.

3.

Drinking a certain dairy product, for the time being, the competition of Illimon on soy milk may shrink.

The development of beverage business is different from that of dairy industry.

Dairy products are more difficult in quality control, with a high proportion of leading and relatively stable growth; beverages have a wider audience, low concentration, changing consumption trends, and require higher innovation capabilities and marketing details; meanwhile, the biggest difference is that their cycles are different.

With the dissolution of the Mengniu Zhipu Mill team in June 2019, the competition of Soymilk for Illimen may be temporarily reduced.

4.

Product upgrades continue to advance, and gross margin is expected to rise steadily.

Yili has continued to invest in launching new products and branding. Taking into account the mild growth of H1 raw milk in 19 years, accelerated product structure upgrades, changes in category competition and brand expansion, we believe that the company’s gross profit margin will increase steadily in 19 years.

Profit forecast: comprehensively considering Yili ‘s future weaving and investment in new products and new channels, the sinking of internal channels and product upgrades, we maintain revenue forecasts for 19-21 years, which are 908, 1017, and 110.9 billion; net profit forecastsBy 80.

2, 99.

4,105.

3 trillion is adjusted to 77.

5, 92.

4,105.

300 million yuan, an increase of 20.

3%, 19.

3%, 14.

0% and eps are 1.

27, 1.

52, 1.

73 yuan / share.

Given 31 years 19 times price-earnings ratio, target price of 39.

4 yuan, 18% space.

Risk warning: food safety risks, raw milk prices rise, new product sales are less than expected